PSO clarifies Nawaz comments on performance

KARACHI - The management of Pakistan State Oil on Wednesday issued clarification regarding the comments made by PML (N) leader Nawaz Sharif with respect to PSOs financial standing.
According to spokesperson of PSO Mariam Shah, the clarification has been issued, on comments made by PML (N) chief Nawaz Sharif during a press conference on Tuesday in which he, by giving the list of the public sectors corrupt organizations including PSO, PIA and Railway, urged the government to make them profitable.
Mariam Shah said that the management would like to clarify that the PML (N) leader appears to be misinformed about current company performance. The leading energy provider has announced very strong results heralding a prosperous last quarter and sound financials backed by its many initiatives.
During the period under review, PSOs sales revenue touched Rs 627 billion as compared to Rs 540 billion during the corresponding period last year. Earnings after tax for the third quarter were Rs 2.5 billion, accumulating to Rs 7.5 billion for the nine-month period. The Board of Directors along with the Ministry of Petroleum has recognised the efforts of current PSO management in transforming the largest public sector organisation into a viable and profitable entity amidst the ongoing circular debt.
As on May 26, 2010, PSOs receivables stand at an alarming Rs 120 billion and it has had to resort to heavy borrowings, resulting in its incurring high financial charges. PSO is working closely with the Government of Pakistan and would categorically deny the comments made by Nawaz Sharif, who in his zeal to project his point of view has resorted to factually incorrect statements.
PSO and its management remain committed to values of transparency and good corporate governance as evident through our recent initiative of on boarding Transparency International Pakistan (TIP) to help PSO adopt best business practices and ensure compliance to standard operating procedures, she added.